The construction industry has a major influence on every Australian and plays a significant role in the Australian economy. Construction provides homes, places for people to work, and recreation facilities. It provides essential facilities and infrastructure such as schools, hospitals, roads, water and electricity supply and telecommunications. The demand for, and supply of construction is influenced by a variety of factors including interest rates, tax reforms and changes in populations.

The construction industry, and its activities, are strongly linked to other parts of the Australian economy such as manufacturing, wholesale trade, retail trade, and finance and insurance industries. In addition, architectural and engineering professions are closely linked with the industry.

Both the private and public sectors undertake construction activity within Australia. The private sector operates in all three areas of activity, with a major role in residential and non-residential building activity. The public sector has a major role in initiating and undertaking engineering construction. In addition it has a role in non-residential building activity, in particular for the health and education industries, building hospitals and schools.